Patient-Centered Outcomes Research Institute fees due July 31

The Patient-Centered Outcomes Research Institute (PCORI) fee helps fund research that evaluates and compares health outcomes, clinical effectiveness, risks and benefits of medical treatments and services. The fee, effective 2012­­–2029, is treated like an excise tax by the IRS. 

  • For plan and policy years that end on or after Oct. 1, 2020, and before Oct. 1, 2021, the PCORI fee is $2.66 per covered life.
  • For plan and policy years that end on or after Oct. 1, 2019, and before Oct. 1, 2020, the PCORI Fee is $2.54 per covered life.

As a reminder, the PCORI fee is assessed on all covered lives — including employees, retirees, spouses and dependents. The final PCORI fee will be due by July 31, 2021.

Fully insured groups: UnitedHealthcare is responsible for filing Form 720 and paying the fee for fully insured coverage. The company will submit the required payment by July 31. UnitedHealthcare customers do not need to take any action. Fully insured customers with ASO health reimbursement accounts and flexible spending accounts are required to pay the fee on each employee covered under the account.

ASO groups: Employers and plan sponsors are responsible for submitting IRS Form 720 and paying the PCORI fee by July 31. Instructions for completing the form will be posted on the IRS website. ASO groups may use one of three available counting methods:

  • Actual count method,
  • Snapshot method, or
  • Form 5500 method

Please contact your broker or UnitedHealthcare representative for more information.